• Stamp duty and registration on HUF partition through mutual family settlement

I, my brother, my sister are members of our father's HUF. The HUF holds properties which we want to dissolve HUF and distribute amongst ourselves through mutual agreed principals of distribution. There are 4 properties owned by HUF: two are whole and solely owned by HUF and in two HUF holds a small share (5% and 7%) . Two wholly owned properties are in Gujarat and the other two partly owned properties are in Maharashtra. What is the applicable stamp duty (if any) and whether registration of the properties is possible (with or without paying stamp duties) ?
Asked 5 years ago in Property Law
Religion: Hindu

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12 Answers

a partition of immoveable properties between coparceners or co-owners can be made orally, and is not required to be in writing; but, if there is an instrument effecting partition of immoveable properties, it requires registration.

 

Partition deed attracts stamp duty and must be registered.

Ajay Sethi
Advocate, Mumbai
94772 Answers
7543 Consultations

5.0 on 5.0

since properties are going to distributed individually, stamp duty is applicable as per state law,

registration is possible and

it is advised that the beneficiary of the property should get it registered on his/her name to avoid any future legal complications.

as the matter involves properties in two states, therefore, you are also advised to take help of one prudent lawyer to enable you to get the resolution perfectly.

 

 

Suneel Moudgil
Advocate, Panipat
2381 Answers
6 Consultations

4.8 on 5.0

We suggest that you should dissolve the HUF and execute an deed whereunder you should divide each person share. The deed which you execute you are required to get the same registered.stamp duty is applicable. 

 

Mohammed Mujeeb
Advocate, Hyderabad
19299 Answers
32 Consultations

4.7 on 5.0

Yes registration is required in Maharashtra. Stamp duty is 2 percent

Prashant Nayak
Advocate, Mumbai
31954 Answers
180 Consultations

4.1 on 5.0

Where any property is partitioned, the largest share which is remaining after the partition is Exempted from Stamp Duty. Stamp Duty shall be paid on the remaining portiions of the property at the Rate of Rs. 10/- for every Rs. 500/- worth (Market Value) of Property.


Ajay Sethi
Advocate, Mumbai
94772 Answers
7543 Consultations

5.0 on 5.0

Any property needs to be registered when there is transfer of any right title to to the property to any other person. A division of any undivided joint property does not pass/transfer any such rights. It only distribute the undivided right of joint owner to the property by determining his/her specific portion in the property by metes and bounds.Therefore registration is not obligatory in case of partition/ division of any joint  property among its co-sharers.

After alienation each co-sharers may get their name changed by mutation process by paying applicable fees.

 

 

 

 

 

Kallol Majumdar
Advocate, Kolkata
2837 Answers
14 Consultations

5.0 on 5.0

No stamp duty payable on dissolution of HUF but registering share in members after dissolution. Better make oral partition, registration not mandatory.

Yogendra Singh Rajawat
Advocate, Jaipur
22647 Answers
31 Consultations

4.4 on 5.0

The stamp duties varies from state to state and as such I would advise you to check with some lawyer the existing rate of the applicable stamp duty. 

 

Regards  

Anilesh Tewari
Advocate, New Delhi
18078 Answers
377 Consultations

5.0 on 5.0

there is no stamp duty on dissolution of HUF and transfer of shares as per mutual agreement between the coparcenors

the coparcenors already have a pre-existing right in the HUF property in the form of undivided shares therein and on partition their shares are only becoming specific and divided 

so if pursuant to mutual partition, the respective shares mutually agreed between the HUF members to be transferred to the respective beneficiary, then release deeds can be made on stamp paper of Rs. 200 only 

Yusuf Rampurawala
Advocate, Mumbai
7515 Answers
79 Consultations

5.0 on 5.0

A partition deed may be prepared mentioning all the properties and the allotment details on the basis of the mutually agreed basis, get the deed registered within the jurisdictional sub registrar's office.

The stamp duty may be  enquired locally.

 

T Kalaiselvan
Advocate, Vellore
84973 Answers
2204 Consultations

5.0 on 5.0

You may be right, however you may still enquire from the local sub-registrar office

T Kalaiselvan
Advocate, Vellore
84973 Answers
2204 Consultations

5.0 on 5.0

  1. As per the information mentioned in the present query, makes it clear that you all wish to divide the property as per law and equally.
  2. There can be a family settlement in writing wherein all will decide as to who will get what out of the properties.
  3. Or can be through court also, if division is not possible with respect to the properties in quesation without interference of the court.
  4. Once shares will be known then each of the HUF member can get their portion registered on their name by paying the stamp duty which is prevailing in their state.
  5. And sir, 2 percent stamp duty is applicable when you are getting the property mutated in the of the Kerta of family, not otherwise.

Sanjay Baniwal
Advocate, South Delhi
5474 Answers
13 Consultations

5.0 on 5.0

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